Profit-Taking on Heels of Bond Sale
Reuters
A tepid response to Thursday’s auction of 30-year Treasury bonds and an afternoon recovery in stocks prompted some investors to take profits after Wednesday’s furious rally.
“It wasn’t a great 30-year auction and stocks had come back, so the market’s given back its gains,” said Joe Lavorgna, senior U.S. economist at Deutsche Banc Alex. Brown.
The yield on the 30-year bond, which moves in the opposite direction of its price, climbed to 5.53%, up from Wednesday’s close of 5.51%. However, the yield on the six-month Treasury bill fell to 3.39% from 3.41%, and the yield on the benchmark 10-year note fell to 5.03% from 5.05%.
